International HRM Practices for Global Expansion: DANONE Company

This report examines international Human Resource Management (HRM) practices, using DANONE as a case study. It explores the complexities of entering global markets, including foreign regulations, cultural differences, and international company structures. The report analyzes the pros and cons of international development strategies for China and Thailand, highlighting target market identification, brand recognition, and potential economic risks. It also applies Hofstede's theory to future expatriates, discussing power distance, individualism, masculinity, and uncertainty avoidance. Furthermore, the report outlines measures to motivate expatriate employees, such as training, increased income, and safety measures, to facilitate successful global expansion. The report concludes by summarizing the importance of understanding cultural and regulatory environments for effective international HRM.

INTERNATIONAL HRM
PRACTISES

Table of Contents
INTRODUCTION....................................................................................................................... 1
TASK 1....................................................................................................................................... 1
(a) Complexities in entering a global market...........................................................................1
(b) Pros and cons of proposed strategies and its implication on HR function...........................2
TASK 2....................................................................................................................................... 3
(a) Hofstede for future expatriates........................................................................................... 3
(b) measures to motivate expatriate employees........................................................................4
CONCLUSION............................................................................................................................ 5
REFERENCES............................................................................................................................ 6

l壱INTRODUCTION
Human resource management is the process of managing employees in an organisation.
They are the most important part of organisation. HRM is having responsibility of motivating
and using techniques to maximise performance of humans, if employees are not working
properly in firm than they have to see the losses. The project report is based on DANONE
Company which was found by Isaac Carasso in Barcelona, Spain and it serves society with food
processing items. Report will discuss about the complexities involved in entering into global
market, pros and cons of proposed international development strategies, culture differentiation of
various countries or to motivate employees to work in another countries.
l壱TASK 1
1.1(a) Complexities involved in entering a global market
When a company thinks about entering in the global market, thing comes first is always
the complexity they going to face in entering into big and different shopping centre. Business
has a revenue of around 22.412 billion. Items that firm produces are dairy products, water bottle,
medical nutrition and early life nutrition. Around 99000 employees are working with this
company. Its products are in many countries and they are looking to expand business globally.
DANONE is already a stable company in many markets of different countries. Still, they face
consequences in making it global.
The issues faced by company in making it to enter in more countries are:
Foreign laws and regulation: It is difficult for any firm to stay stable in other countries
because of their laws and regulations. Different countries have many policies and norms. Each
firm has to work according to their theory. DANONE has to face many problems in making the
firm global. It is not easy to know what the policies has to follow of country to enter into
market. Foreign laws has to be followed by firms, if not followed than they have to suffer the
loss of money or wind-up.
Communication and cultural differences: It is the biggest issue to expand a firm, each
country has its own language as it becomes difficult to understand what humans needs and
preferences. Cultural differences are also an issue, it takes time to know the culture of each
country. Your product should match according to culture they follow and their belief.
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Communication and norms of countries has affected many companies to expand themselves in
other parts of globe.
International company structure: Different countries has its own business structures
which has to be followed by firms, structures can be in form of (no. of employees or no. of
directors, what structure they use to make it effective ) all such makes it problematic to expand
their business in other countries. Its difficult to make structure of the firm according to them.
Human resource: This is the most important aspect of making a company global, it is
somehow difficult to know the nature of humans in various countries. This complexity has to be
understood by firms to expand themselves in various countries. The main thing is to know that
what type of problem they have to work in industries.
Global pricing strategy: For a firm, to earn profit in different countries is required to
know at what basis the prices get fixed. If DANONE becomes competitor of other companies
than they need to work according to market environment, if humans of particular country is
purchasing your product and satisfied with that than company can move to change in prices.
Firstly, they need to understand the promotion techniques used in other countries.
1.1(b) Pros and cons of proposed international development strategies and its implication on HR
function
When DANONE has to expand business in CHINA and THAILAND, then they have to
face many problems. Proposing a strategy according to these countries needs to have research of
both places. Strategies is a process of making various type of plan to enter into their market.
CHINA and THAILAND are having a big market of medical nutrition which makes company a
threat to enter into their grand market. There are many things which affect in making strategies
for particular countries. Planning should be in such a way that DANONE doesn't have a problem
in making own market without having any issues. These two countries are mostly visited by
tourists to have a medical check-up of them just because facilities available at both places are
outstanding.
The benefits and limitations of planning to enter in these two markets are:
BENEFITS:
Target market: Making strategy helps in targeting the market in an easy way. Doing
this makes company more powerful of choosing one segment to focus. Through research,
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company can know which age factor is mostly in pain and harmed in these countries and
according to such thing they can produce the product for them at reasonable prices.
Brand recognition: DANONE is a great company and a brand in producing the medical
nutrition products, so it will not a problem to accept the item of this company by the people of
these countries through promotion technique. Different countries has various cultures and norms
and according to same, product is produced keeping in mind, that they does not get affected with
items.
Lowering prices: It helps in covering a large market of different countries. Providing a
quality product at lower prices helps company to make themselves stable in new markets. Such
strategies help the firm to make their product recognized by name only.
LIMITATIONS:
Existing companies: People of any country accept those product which they are using
from last so many years, just because of trust they have on them. So it becomes hard to make a
stable firm out in such grand shopping centre. Company has to create a trust of their items, so
that people of both countries can buy the products easily. Exist firms make it difficult for other
entities to enter into market.
Economy risk: Country's economic conditions and policies as well as currency exchange
rate can harm a company’s operation. This is required by firm to know the different situations in
such countries which affects the firms image and goodwill.
l壱These factors have great implications on human resources in a great manner. They refuse to
go in such countries and to work out there just because of languages, culture and their norms that
affect people to go out and work. Firms have to motivate such people in a perfect manner so that
they won't say no to job at those places.
l壱TASK 2
l壱(a) Hofstede for future expatriates.
Hofstede theory is being used by many of the big companies. The theory works over the
similarities and differences are there in between human resource. Few things for future
expatriates are as follows.
Power and Distance: This is a process of distribution of unequal power among the
employees of organisation. Society is having a inequality in between men and women which
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shows that both are having similarities and differences (Scullionn and Collings, 2011). The basic
issue involved in human equality shows that functioning of each particular society. This all is
there because of cross culture.
Individualism and collectivism: This shows about culture of people. Individual thinks
for himself/ herself or mostly up to their family. Their relation with society is not so good.
Collectivism is a process in which people stand with the whole society as one, people continue
protect them to ignore unquestioning loyalty (Alfes, Truss, Soane, et. al. , 2013). These both are
required by organisation to work over such things.
Masculinity and femininity: Both people plays their effective role in their parts.
Generally women gets attached with relationship, helping others and physical environment, and
men's are having ego towards their goals, money etc. Normally masculinity stands for society
they are tough and focused and femininity concerned with quality of life.
Uncertainty avoidance: Culture programs and its member are either comfortable and
uncomfortable in various situation. Unstructured situation are surprising and different usual. The
main problem is society tries hard to control various uncontrollable things. This can be happen
any time and avoidance should not be there for such things.
As such culture plays an effective role in future expansion of business in different
countries, hofstede theory is useful of expatriate in the firm. These points are taken care while
making a strategy by business (Chand, 2010). All these plays a effective role in making
decisions for expand. If a person wants to taken his business in other parts of the globe than it s
required to know the culture and norms of that place. Knowing cross culture makes it easy for
your company to stable in market. In many countries masculinity and femininity is there and in
few parts uncertainty avoidance is there.
For DANONE it is necessary to look for the different parts before making expand of
their firm. This will help them to face problems easily and effectively too.
l壱(b) measures to motivate expatriate employees.
For companies its a difficult task to motivate employees to go in another country and
work for same company. DANONE is expanding his business in another parts of globe, so it is a
process of sending a within premises person to go at that place and work for same firm.
Different countries has various cultures and if a business is going I that particular place
than it is required to understand their culture, norms and beliefs. Its a motivation of employees
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going another place and working (rewster and Bennett, 2010). There are different types of
reward are given to employees for making them comfortable and getting yes from those to work
in such country. Such rewards are as follows:
Training: This is provided to employees in such a way that they cannot deny to go out
there and work. In such thing all the information is given to person about the country and how
they have to deal with any situation. After taking training they get motivated and ready to work
on such places. Development program are given by the experts in such a way that people taking
information gets motivated in themselves.
Increase in income: Companies motivate the employees by giving them a increase in
income. Employees gets motivated after receiving such thing, they think to develop themselves
with firm. Working outside own country makes uncomfortable to employees and fear of safety
allows them to deny for going across the boundaries to work.
Safety measures: somehow this motivates a person to go outside and work. A people
who are looking to go out and work they need to have safety measures so that nobody can harm
them. If a company is providing safety parts then employees get ready to go and work. Safety
measure should be like providing them a house to live and special accommodation of hospital
bills.
l壱CONCLUSION
The above report is related to know the environment of different countries so that easily
one can expand his business in other countries kin easier manner. Complexities a firm faces is
also involved in this report, and ways of motivating employees to got out and work fro the
company. Different culture are there with various parts of the globe, before making a entity a
part of such place it is require to know the issues a firm will face in those countries. DANONE is
itself a great brand so there were less issues to get them stable in new markets, problems were
the culture and norms they follow in their country. Is any benefit or limitations are there in
making a part of those countries. CHINA and THAILAND in included to know the pros and
cons of such country, the firm is already working in so many places of globe, so it was somehow
little bit difficult to enter into new market, because existing market and economy is unusual so it
is problematic to make a company stable and recognizable to people of different countries. All
such things has concluded in this report.
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l壱REFERENCES
Books and Journals
Stahl, G.K., Björkman, I. and Morris, S. eds., 2012. Handbook of research in international
human resource management. Edward Elgar Publishing.
Harzing, A.W. and Pinnington, A. eds., 2010. International human resource management. Sage.
Scullion, H. and Collings, D., 2011. Global talent management. Routledge.
Delbridge, R., Hauptmeier, M. and Sengupta, S., 2011. Beyond the enterprise: Broadening the
horizons of International HRM. Human Relations. 64(4). pp.483-505.
Chand, M., 2010. The impact of HRM practices on service quality, customer satisfaction and
performance in the Indian hotel industry. The International Journal of Human Resource
Management. 21(4). pp.551-566.
Schmelter, R., and et. al, 2010. Boosting corporate entrepreneurship through HRM practices:
Evidence from German SMEs. Human Resource Management. 49(4). pp.715-741.
Alfes, K., and et. al, 2013. The relationship between line manager behavior, perceived HRM
practices, and individual performance: Examining the mediating role of engagement.
Human resource management. 52(6). pp.839-859.
Brewster, C. and Bennett, C., 2010. Perceptions of business cultures in Eastern Europe and their
implications for international HRM. The International Journal of Human Resource
Management, 21(14). pp.2568-2588.
Fong, C.Y., and et. al, 2011. HRM practices and knowledge sharing: an empirical study.
International Journal of Manpower. 32(5/6). pp.704-723.
Gomes, E., and et. al, 2015. A comparison of international HRM practices by Indian and
European MNEs: evidence from Africa. The International Journal of Human Resource
Management. 26(21). pp.2676-2700.
Online
emerald insight. 2017. [Online]. Available through
<http://www.emeraldinsight.com/doi/abs/10.1108/eb046368> [Accessed on 10th November
2017].
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